Bitcoin’s (BTC) recent price surge above $101,000 has fueled bullish sentiment across the altcoin industry, led by Ethereum (ETH). Fears of further crypto capitulation have subsided significantly, less than a week before the much-hyped second inauguration of pro-crypto US President-elect Donald Trump.
Furthermore, the political shift in the United States will set a new precedent for the mainstream adoption of digital assets and Web3 protocols worldwide. At the time of writing, over 562 million people worldwide own crypto assets, indicating that adoption is still in its early stages.
Ethereum price is gearing up for a major shakeup
From a technical analysis perspective, Ether’s price has been preparing for a major bullish shakeup over the past year. The large-cap altcoin, with a fully diluted valuation of approximately $407 billion and a 24-hour average trading volume of approximately $26 billion, forms an inverse head-and-shoulders (H&S) pattern, with a robust support level at approximately $2,923.
With a major resistance level around $4,060, the price of Ethereum is aiming for a new all-time high in the coming months, fueled by institutional investors. Additionally, renewed interest in US Ether ETFs has helped reduce the circulating supply of Ether.
If you examine the formation of the left shoulder, #Ethereum $ETH consolidated around $2,800 for 37 days in mid-April before moving higher.
A similar consolidation could occur now while the right shoulder of this head-and-shoulders pattern develops. pic.twitter.com/O0TQGu3YSr
— Ali (@ali_charts) January 17, 2025
Favoring fundamental matters
The Ethereum network has attracted the most experienced web3 developers, mainly due to its massive size and robust ecosystem, backed by renowned investors. Under the leadership of co-founder Vitalik Buterin, the Ethereum network has grown into a vibrant Web3 ecosystem, with a total value of approximately $67 billion and a stablecoin market cap of approximately $114 billion.
In an effort to ensure sustainable future growth prospects, Ethereum’s core developers are preparing the Pectra upgrade before the end of the first quarter of 2025. The Pectra Upgrade will focus on improving Ethereum’s execution and consensus layers.
For example, the Pectra upgrade will involve EIP-7702, allowing regular wallets to temporarily act as smart contracts during transactions to improve security. Another key feature of the Pectra upgrade is the EIP-7251, which will increase the betting limit for validators from 32 ETH to 2048 ETH.
Credit : coinpedia.org
